According to a new report from Zion Market Research, the global Gigabit Passive Optical Network (GPON) equipment market accounted for $5.50 billion in 2017 and could reach $25.82 billion by 2024. This represents a CAGR of around 24.72% between 2018 and 2024.
Zion notes that GPON is known as the most cost-effective technology used in FTTH deployments, and is the evolution of Broadband Passive Optical Network (BPON). Globally GPON delivers triple-play services, including Internet, VoIP and digital content over a single fibre optic line to households and office premises. The research house says rising demand for bandwidth due to social media applications, streaming videos, content sharing, and online gaming is constantly pushing the requirements for better experience and higher bit rates.
Based on the component segment, Zion divides the global GPON equipment market into optical filters, optical power splitters, Wavelength Division Multiplexer/Demultiplexer (WDM/D) systems, and optical cables.
In the product segment of the market, Zion includes optical line terminals, optical network terminals, and passive optical splitters.
The company analyses the market on the basis of five regions namely Asia-Pacific, North America, Latin America, Europe, and the Middle East and Africa.
In 2017, Asia-Pacific was the leading regional market in terms of revenue, and is set to continue its dominance within the forecast period. The key contributing countries for the growth of the GPON equipment market in this region are China, India and Taiwan. Increasing numbers of Internet users and demand for higher bandwidths are driving the market in these countries. Technological advancements, coupled with rising FTTH projects in China, are the major factors expected to shape the Asia Pacific GPON equipment market in the coming years.
North America is another leading market for GPON and is expected to witness remarkable growth in the analysis period. High demand for data-intensive services such as video on demand, video conferencing and VoIP is a major factor contributing to the growth of the GPON equipment market in this region.
Europe is the third leading market for GPON and is predicted to show noticeable growth mainly due to the growing demand for high bandwidth capabilities and FTTH services in countries such as the UK, France, and Germany.
Latin America and the Middle East and Africa are believed to show a substantial growth potential in the forecast period. Brazil, Uruguay, and Chile are amongst the leading countries here for FTTH deployments. Countries such as UAE, Saudi Arabia and South Africa are some of the prominent regions driving the market in the Middle East and Africa.
Zion lists major players operating in the GPON equipment market as: Huawei Technologies Co. Ltd; Calix Inc; Verizon Communications Inc; Mitsubishi Electric Corporation; Broadcom Corporation Inc; Alcatel-Lucent S.A.; Adtran Inc; ZTE Corporation; Freescale Semiconductor Inc; Motorola Solutions Inc; Ericsson Inc; Alphion India Pvt Ltd; and Hitachi Ltd.